The real estate investment company INVL Baltic Real Estate had a consolidated net profit of EUR 1.88 million in the first half of this year, 152% more than in the same period last year when net profit was EUR 0.75 million. The revaluation of the real estate value of EUR 1.7 million had a positive impact on the results.
The company’s consolidated equity at the end of June this year was EUR 21.2 million. Equity per share was EUR 2.63 and grew 25.6% compared to the end of June 2021 (also taking into account dividends that were paid).
INVL Baltic Real Estate’s properties further maintained a high occupancy level and increased operating income. The company’s consolidated net operating income from property holdings in the first half of 2022 was EUR 1.01 million and was 46% more than in the same period last year (EUR 0.69 million). Consolidated revenue grew 32% over the period of comparison to EUR 1.64 million, of which consolidated rent income from property holdings increased 13% to EUR 0.93 million.
The largest property that INVL Baltic Real Estate owns is the office building at Palangos Street 4 in Vilnius, which contains the Talent Garden Vilnius coworking space that the company operates. That building’s income in the first half of the year was EUR 1.09 million, or 45% more than in the same period last year. The income of the Žygis Business Centre increased 60% over the same period of 2021 to EUR 0.24 million.
The value of INVL Baltic Real Estate’s property holdings after the first half of the year was 33.8 million and was 14% more than a year earlier (EUR 29.6 million).
“This year we’ve focused heavily on the buildings of the former Communications Palace along Palangos and Vilniaus Streets. At the start of the year, we publicly presented design proposals for this reconstruction project. The Vilnius City municipality recently approved those proposals and issued the design requirements for renovating the complex. Having obtained the design requirements, we are moving on to the next stage of the development – preparation of the technical design for the buildings’ reconstruction,” says Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, which manages INVL Baltic Real Estate.
He said significant advances were also made during the first half of the year in developing the property at Vilniaus Street 37.
“Architectural, historical and polychrome studies of this distinctive building in the Old Town of Vilnius were completed, all demonstrating its value. After completing that phase of the work, we are continuing preparation of the refurbishment project. The value of the property was further boosted by a transaction completed in early June to acquire the shares of the company RE 1, following which INVL Baltic Real Estate become the sole owner of the facilities at Vilniaus Street 37,” Vytautas Bakšinskas notes.
One of INVL Baltic Real Estate’s latest transactions was a sale of real estate completed in early July. Dommo Grupa, which is owned by the real estate investment company and is developing the 58-hectare (ha) Dommo Logistics and Industrial Park beside Riga, completed the sale of a 3.4-ha plot of land for EUR 0.4 million.
According to the real estate fund manager, INVL Baltic Real Estate will pursue further gains for investors from investments in commercial real estate by ensuring growth of operating income and cost optimization. The fund’s assets under management provide reasonable expectation of continuing growth in property value.
About INVL Baltic Real Estate
INVL Baltic Real Estate owns real estate in Vilnius and Riga: office buildings in the Old Town of the Lithuanian capital on Vilniaus Street and in Šiaurės Miestelis, and the 55-ha Dommo Logistics and Industrial Park by the juncture of highway A8 and the A5 Riga bypass road. The company’s properties had occupancies of 92% to 100% at the end of June 2022.
INVL Baltic Real Estate’s current property holdings have a total area of 28,000 sq. m. and a value of EUR 33.8 million.
Since its launch as a collective investment undertaking (on 22 December 2016), INVL Baltic Real Estate has been one of the Baltic real estate funds open to retail investors with the highest stable returns. The fund operates as a closed-end investment company. The company is managed by INVL, the leading investment management and life insurance group in the Baltic region. INVL Baltic Real Estate will operate as a closed-end investment company until 2046, with extension possible for a further 20 years.